Earthodic

How Earthodic is providing a sustainable paper-based replacement to plastic packaging

Each year almost 3 million tonnes of packaging ends up in landfill in Australia. If this packaging was recycled, it could reduce greenhouse gas emissions by about 2.2 million tonnes – which is equivalent to removing 740,000 cars from the road for one year. Like many people, Albert Tietz was concerned by the environmental impact of packaging waste and as a research scientist he wanted to find a solution. The solution is Biobarc™.

Originally based on nearly a decade of research at Queensland University of Technology (QUT) and invented by Mr Tietz, Biobarc™ is a bio-based water-resistant coating for paper packaging. Biobarc™ exhibits oil and grease barrier properties and excellent wet-strength retention while retaining its ability to be recycled and repulped. Mr Tietz and his co-founders, including CEO Anthony Musumeci, are on a mission to change the packaging industry, led by the knowledge that every tonne of cardboard that can continue to be recycled because it is coated with Biobarc™, captures and stores the same amount of carbon dioxide as 3.7 acres of forest or 370 trees in one year.

A circular economy solution

Used packaging makes up around one third of landfill waste. Paper alternatives to plastic packaging need coatings to enhance performance. But most existing coatings stop paper, paperboard or cartonboard from being recycled. Those that can be recycled are not 100% bio-based which means they’re commonly derived from fossil fuels.

Biobarc™ provides a circular economy solution that utilises lignin, a by-product of the pulp and paper manufacturing process that often goes to waste. It is a 100% bio-based carbon product (certified by USDA) and enables the coated material to maintain 100% recyclability (repulpability and recyclability certification by Western Michigan University).

As well as reducing the volume of cardboard that ends up in landfill, by utilising a waste product Earthodic is removing the need for lignin to go to landfill also. This is not only better for the environment but also removes paper manufacturers’ disposal costs associated with lignin.

Industry applications

By providing key barrier properties to paper packaging, Earthodic is striving to replace plastic packaging with a sustainable alternative without compromising on the performance characteristics. The coating can be applied using existing equipment, which removes the need to invest in new machinery.

Earthodic is initially targeting bulk agricultural produce packaging, such as fruit and vegetable boxes and liner sheets, as well as industrial packaging such as anti-slip sheets and fibre-based drums, and insulated cold chain packaging used for food and pharma transportation. Following FDA food contact certification, Biobarc™ may also be suitable for other food contact packaging. Further applications include structural construction and building products.

Significant’s investment and role

Significant Capital Ventures (“Significant”) is passionate about investing in organisations like Earthodic that are incorporating deep technology coming out of R&D labs within Australian universities.

Investing in innovative, forward-thinking founders like Mr Tietz and Mr Musumeci who have worked together for over 10 years at QUT, along with their co-founders Fiona Donaghey and Melissa Mail is what Significant is about. Earthodic’s products are focused on tackling some of the world’s biggest environmental issues associated with recycling and resource management and contributing towards fulfilling the key United Nation’s Sustainable Development Goals (UN SDGs), including responsible consumption and production; industry, innovation and infrastructure; life on land; and life below water.

“Earthodic has the trifecta of an exceptional team, technology and traction. Their ambition to transform sustainability in the global packaging industry is mission critical for the planet. The fact that this important development in materials technology has been incubated in Australian universities is another illustration of the calibre of our research and commercialization capabilities and we are pleased to be able to support Anthony and Earthodic in realising their vision. Equally, it is refreshing to work with a management team that has an ambition and capability to quickly achieve global adoption. This is an exciting opportunity, and we were delighted to participate in this very successful raise.” – Fiona Hindmarsh, Managing Partner, Significant Capital Ventures

Significant’s in-depth due diligence ahead of investing in round allowed the Significant team to start supporting the company from day one. Led by Michele Troni and Nina Kuzmina, the Significant team is acting as board observer and have already provided several introductions to potential customers and future investors. Earthodic is continuing to scale the business and is currently working on increasing manufacturing 10-fold, conducting new commercial trials and sales pipeline conversion, expanding their team, and further expanding their certifications and IP portfolio.

“We are extremely pleased to receive funding support from the leading funds in the sustainability and climate space across Australia, the US and Asia. It validates everything that we are doing and underpins Earthodic’s expansion to the US and development of manufacturing partnerships. We are really excited to roll out our sustainable barrier coatings with packaging companies and household brands. Helping them achieve many of their sustainability goals and eliminate non-recyclable packaging waste is the mission that drives our team,” – Anthony Musumeci, CEO and co-founder, Earthodic

If you’re interested in investing in other Australian science-backed technology companies like Earthodic, or if you’re a packaging producer wanting to understand more about Earthodic, please get in touch.